The Mudra Yojna Scheme For Women: Here's All You Need To Know
The Mudra Yojana Scheme for Women provides collateral-free loans of up to 10 lakhs. Read to know more about what is mudra yojana?
The rise of industrialisation has spawned many women entrepreneurs. Women are actively entering the business domain, giving stiff competition to male-dominated industries. Women entrepreneurship is the latest trend in India with constant support from government schemes like the Mudra Loan for Women.Launched in 2015 on the aegis of the Pradhan Mantri Mudra Yojna, the scheme helps female entrepreneurs initiate and expand their business plans. Easy access to financial resources has helped these women in giving a tangible shape to their business ideas.
This blog discusses the Mudra Yojna Scheme for Women in detail.
What Is Mudra Loan Scheme For Women?The Mudra Loan for women runs as a unit under the umbrella scheme of Prime Minister Narendra Modi’s aspirational project, the Pradhan Mantri Mudra Yojana. Alternatively known as Mahila Udhyami Yojana, the loan facilitates funds up to INR 10 lakh for startups and small and micro firms led by women. The funds procured from the scheme helps women start a new venture, expand their existing firm, or introduce modern technology in their current business.
Under this arrangement, women get collateral-free loans for non-farm, non-corporate, and non-agricultural business projects. The borrowers avail of a window of 3-5 years for loan repayment. In India, public sector banks, private banks, Non-Banking Financial Institutions, Micro Finance Institutes, Gramin Banks, and Sahakari Banks grant Mudra loans to women.
Eligibility Criteria For Mudra Loan For WomenThe eligibility requirements for the Mudra Yojna dedicated to women are:
• Businesses eligible for the loan are manufacturing, production, repairing, tailoring, photocopying, service centers for e-appliances, spas, and beauty parlors.
• Women business owners who plan to seek loans under the Mudra scheme need to be between 18-65 years old.
• Those who have availed of any other government scheme are not eligible for Mudra Loans.
• Women involved in the retail business are not eligible for the loan scheme.
• Those owning over 50% stake in an entity are also eligible under this scheme.
How To apply?Women entrepreneurs and business owners can apply for the Mudra loan facility online and offline. For offline, the borrower can visit the bank and fill in the Mudra loan application form. Then, they need to submit documents to the bank for verification. If the bank finds the papers valid, it grants the loan.
With an online loan application, the borrower needs to fill in the details in the application form downloaded from the Mudra website. Then, they must visit the bank for the remaining formalities. After complete verification of documents, the bank sanctions the loan.
Loan Categories Under Mudra Yojna Scheme For WomenThe scheme provides loans under three distinct categories.
• Shishu Loan: Under this category, the maximum loan amount permissible is INR 50,000.
• Kishor Loan: The borrower can get funds to a maximum limit of INR 5 lakhs under the Kishor category.
• Tarun Loan: This category grants loans between INR 5 lakh to INR 10 lakh.
Prerequisites For Availing Of A Loan Under The Mudra Yojna Scheme For WomenThe documents to submit to the financial institution to get a loan under the Mudra scheme are as follows.
• ID proof, such as an Aadhar card, PAN card, or voter ID.
• Valid address proof such as electricity, telephone, and other utility bills.
• A business registration certificate.
• The borrower has to deposit a business plan for loan sanctioning.
• For existing businesses, ITR filings are necessary.
ConclusionThe participation of women in business is set to unlock new opportunities for economic growth in India. Schemes like Mudra Loan are a strategic step taken by the government of India to promote financial independence amongst women entrepreneurs.
Q1. What is the aim of the Mudra Loan Yojana for Women?
Ans. The scheme's main objective is to offer financial aid to women business owners for business startups and expansion plans.
Q2. What are the main elements of the Mudra Yojana for Women scheme?
Ans. The primary features of the scheme are:
• Women can acquire loans without collateral
• Low or concessional interest rates
• Flexible loan repayment period
• Negligible processing charges